How far will they go?

The Brisbane unit market is continuing to grow, with some of the sales prices at nearly double what they were only a few years ago. We sold a one-bedroom unit last week, under 60sq m for nearly $700,000!

So, how much further can they go? One indicator is the lack of new apartment complexes that are being marketed. You would think that with prices rising, developers would be strapping the tool belts on to the chinos and heading to site themselves!

But they’re not – largely due to the unpredictable cost to build high rises. This can only mean that even at the new high prices, developers can’t comfortably build at those levels, so prices will need to go even further to restart construction. This is contributing to the lack of supply.

What about other markets? I was in the car this week with Elliot Placks, the owner of Ray White Double Bay. He was on the phone discussing the pricing of an apartment and I overheard him say “likely $8m”. Curious, I inquired whether or not the unit had water views. He replied, “No”. I asked, “Is it new?” He told me it was 15 years old. I then wondered if it was in a nice part of Double Bay. He said, “Every part is nice, but it’s on the other side of the road!”. He also mentioned the unit was about 220sqm, which translates to about $40,000 per square metre!

I know that Brisbane is not Sydney etc, but when you’re trying to see how far prices can go, this should give comfort to the buyers.

Haesley Cush I This article is from the March 31st issue of The Courier Mail Digital Edition. To subscribe, visit https://www.couriermail.com.au/